Butler Health System, Ellwood City Hospital sign management agreement

BUTLER -- On Tuesday, the boards of trustees of the Ellwood City Hospital and Butler Health System announced they have entered into a five-year management and collaborative initiatives agreement.

Under the agreement, Raymond Beck, Ellwood City Hospital president and chief executive officer, will become a member of the Butler Health System executive team. Beck will continue to have primary responsibility for the Ellwood City Hospital, which will maintain its board of trustees and governance structure, a news release said.

"The board of trustees at Ellwood City Hospital decided that it wanted a strategic partner. Ellwood City Hospital faces the same uncertain and difficult future that challenges Butler Memorial Hospital and all U.S. hospitals," Ken DeFurio, Butler Health System president and CEO, said in a release.

"After a period of due diligence, our organizations decided that there is an excellent cultural fit, and both organizations are committed to working together to improve upon existing foundations of high quality and solid financial performance. This is proof that in these turbulent times it is possible for independent community providers to come together, work collaboratively, and do it with mutual respect -- all for the betterment of the communities they serve," DeFurio said.

"I look forward to working with Ken and the Butler management team as we create a different model for hospital collaboration. This is an excellent opportunity for us to build upon existing relationships with physicians already providing care in both communities," Beck said.

"This agreement not only assures a collaborative effort in the overall delivery of care, but long term it should help to control costs, Christy Spoa, Ellwood City Hospital board chair said. "The Ellwood City Hospital looks forward to this relationship as the hospital prepares to enter into its second century of delivering high-quality care. I thank both boards and respective leadership for their efforts and vision."

"We believe that in the era of national health care reform, the best way to deliver value is through local, collaborative relationships," said Fiore Londino, Butler Health System board chair. Ellwood City Hospital and Butler Health System are confident that this relationship will prove to be a model for how community providers can and should work together."

The agreement formally takes effect on July 1. Beck and DeFurio said the transition process between the two organizations has already begun.

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